Lake Erie Conservative

thoughtful discussion(s) about issue(s)

Posts Tagged ‘Spain’

… Financial instability in the Banks is Going to Drive This [#Greece][#financial crisis]…

Posted by paulfromwloh on Friday,January 1st,2016

.. it is the instability of the financial system , and that of the banks , which is going to drive this financial crisis …

.. why ? the outflows from the banks . The banks cannot sustain this for very long . With that comes pressure on the Greek Government from ” behind its lines …”

.. [h/t —]..
.. [link] to the blog news post ..

.. the Euro carries a deep well of popular support . It is a great deal more than the Greek drachma ever has had . So , it is in the Greek Government ‘ s interest to eventually make a deal …

— [update] — that it did .. the crisis was eventually settled after a  couple of weeks , but at a high cost .. several major Greek banks collapsed as a result of this brawl … also , Syriza [Greece ‘  s  current governing majority party] may well have won a majority again at an  election , but they  have the task  now of reviving  the economy ..

.. the business community will not be happy with radical leftists at the controls . They will be the ones picked on by the government for tax revenue .. Well , the business will not  be too  cooperative with investment unless Syriza agrees to play ball on spending ..  the EU and the ECB should be of help …

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… The E.U. will just love This [#supply side tax cuts]…

Posted by paulfromwloh on Sunday,June 29th,2014

.. in Spain ? ..

.. yes , in Spain .

.. some spending restraint would be helpful folks . Dan Mitchell [Cato Institute] is right . The tax cuts will be a help . The thing is that they are too small . They need to be bigger and bolder …

.. [h/t — HotAir]..
.. [link] to the blog news ..

.. sharper tax cuts , especially to individual income taxes , as well as capital gains taxes , would be a big help . What would also help is liberalization of the employment market …

.. You have a big problem in Spain . The unemployment rate is stuck at 26.5% . Yes , it is that high . Employers are , however , reluctant to hire . Guess why ? One reason is that it is so hard to fire or terminate an employee . You want to take a big whack out of that ? You have to take the risk that people will be let go . Then employers will be willing to hire people …

.. Also , figure out a way for supply — side employment tax cuts . Another way to discourage hiring is to tax the hell out of it . Reform the social insurance system would help . Also , encourage employers to invest in human capital [people] as well as physical capital [plant] . Also , accelerate the tax write – off for depreciation …

.. Short – term , you will lose some tax revenue , while the private sector and the government adjust . It does take time for investment to have an effect on an economy . But , be patient . It works . Every time . And when it does , wow , it will shock everyone at how effective that it will be …

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… Angela Merkel wins re – election in Germany …

Posted by paulfromwloh on Monday,September 23rd,2013

.. interesting result , to say the least .

.. you may ask , why ?

.. Germany is Europe ‘ s power engine . Merkel is , at least for now , Germany ‘ s unchallenged leader . No one else even comes

Angela Merkel September 2010

Angela Merkel September 2010 (Photo credit: Wikipedia)

close . No one else in any of of the other parties comes anywhere close to matching her in stature , or in policy . She may not be the idea machine that Maggie Thatcher was , but she is no dim bulb . She knows what she does , and what she does not , and is very will to seek out advice from other quarters , when she needs to ..

.. Her party coalition is made up of two parties . One is the mainline Christian Democratic Union . The other is the Bavaria – based Christian Social Union . Basically , they are one and the same . The two [ the Christian Democratic Union (C.D.U.), with its Bavarian sister party , the Christian Social Union (C.S.U.)] came very close to gaining an absolute majority in the German parliament , or Bundestag . This has not been done since 1957 , in the West German days under Konrad Adenauer .

.. Her normal coalition partners were not so lucky . The Free Democrats (the F.D.U.) were , in effect , shut out of the Bundestag in this election . They only achieved 4.8% of the vote . In Germany , you need 5.0% of the vote for your party to have representation in the Bundestag . Well , the anti – euro Alternative fur Germany (AfD) fell short , as well , at 4.7% of the national vote , so they will not be in the parliament , either . However , for their first time out , that share of the vote is not a bad result .

.. The Left in Germany had a very bad night . Amazingly enough , the loonie (far) left did all right . Both of the loonie left parties [the Greens and die Linke (the Link)] achived about 8.0 to 8.5% of the vote . The mainline left (the Social Democrats) were not so lucky . Their vote declined from the last election , to about 25.5% . The bigger problem was perception . The Social Democrats lost , and lost big , to the C.D.U. by nearly 17.0% . That hurts . The current party leadership will , in all likelyhood , have to stand down , in favour of fresh blood . What they have been doing has not worked , and they need to change …

.. So what happens next ? Merkel will be able to ease up on her austerity policy , at least somewhat . The immediate crisis has abated , but Greece and Cyprus are still the problem children . Cryprus is so small , and the Russian investors will take flight , so the Cypriots will likely be able to stay in the Euro . Not so for the Greeks . It is only a matter of time before Greece is given a stark choice , and Germany will have the whip hand .

.. Merkel ‘ s hand will be strengthened otherwise . Her power , relative to France will be much greater . Francois Hollande has proven to be a total screwup , and his Socialists are not a whole lot better . Hollande had better hope that France does not have legislative elections anytime soon , or …..

.. There are also more conservative governments in Europe . Right now , Britain is governed by a coalition , but at the next elections , the Tories , along with the UKIP , are likely to win an absolute majority . Norway is under new management , and so is Spain ….

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